It is important for financial institutions such as consumer financial business to check credit status of a customer seeking financing so as to minimize probability of a bad debt. Therefore, when the institutions hold a loan contract with a customer, they will verify fundamental personal information of the customer, including an address, a full name, a telephone number, a birth date, and a gender, furthermore, employment situation and an income of the customer. These verified personal information upon making a loan contract are usually registered to a customer database of the institution to be referred to upon request by a clerk.
This kind of personal information must be maintained properly. In other words, such changes in the information as the address or the telephone number should be immediately reflected to the customer database. Otherwise, inconvenience will be brought about in credit status checking of a customer, which may result in bad loan.
Various measures have been taken by various financial institutions including banks and consumer loan financiers to update the customer database properly by tracing the credit information of the customers. It is obvious that continuous examination on customers' credit information with sufficient time and labor will efficiently prevent bad loan. Such thorough trace of customers' credit information is not practical generally considering the cost required for the examination.